First half year of Turk Telekom in 2003, commented by Erkan Akdemir, the Chairperson of Turk Telekom and Mehmet Ekinalan the General Manager.

During the press conference many issues, from financial data of Turk Telekom to AYCELL-ARIA merger as well as Turk Telekom’s processes of becoming autonomous/privatized have been clarified.

Net profit of Turk Telekom for the first six months of the year 2003 is declared to be 1 billion dollars.

Erkan Akdemir, the Chairperson of Turk Telekom (TT) stated that in the first six months of 2003 TT increased its income by 29.1 percent and activity profit by 86.9 percent saying “Turk Telekom’s profit is not generated by price raising but efficiency.”

Erkan Akdemir, the Chairperson of TT, Mehmet Ekinalan the General Manager, Board Members, Deputy General Managers and Department chiefs joined the press conference wherein first six months of Turk Telekom in 2003 was appraised.Erkan Akdemir, Turk Telekom’s Chairperson gave information about the financial sizes of Turk Telekom. Stressing that Turk Telekom’s investment expenditures in first half year of 2003 covering the January to June period, increased by 16.9 when compared with the first six periods of the year 2002, Akdemir said the reason of increasing speed of Investment expenditures being small was the procedures under the Act regarding Public Tenders. Akdemir underlined that Turk Telekom’s investments would increase in the second half year.

Stating that they brought 1.7 Quadrillion of Turkish Liras to the Treasury by VAT, fund and other virtues, Akdemir emphasized that dividend income would be 300 trillion TL.

Mehmet Ekinalan, Turk Telekom’s General Manager emphasized that Turk Telekom is the 13th largest telecom company in the world with its infrastructure, staff and the turnover it actualized. Underlining the sizes of Turk Telekom, Ekinalan said that not a great enhancement in the ownership immobile phone was experienced where the number of subscribers of immobile phone is in the level of 18 million. Stating that the European average of 1 phone per house is reached, Ekinalan emphasized that they would increase their pay phone investments in a way to make them an alternative to mobile phones.

60 THOUSAND PORTS COME INTO SERVICE IN OCTOBER

Ekinalan said the most important investments of Telekom are its fiber optic cable investments. Saying that there are 81 thousand and 716 kilometers of fiber optic cable in Turkey, Ekinalan emphasized that this number would be enhanced. Stating that number of ADSLs which was around 3 thousand at the beginning of the year 2003 reached 10 thousand by straining the circumstances, Ekinalan said

“These are the figures reached before the ADSL tenders finalize. Tender couldn’t be implemented because of the procedures under the Act regarding Public Tenders. These numbers would reach my higher figures as tenders are implemented.”

Reminding that the tender for ADSL of 60 thousand ports were finalized, Ekinalan said the capacity would come into service by October. Saying that the process of tender for ADSL of 200 thousand ports endures, Ekinalan added that the broadband access being 128 kbps would be increased to 521 kbps with reasonable prices.

Regarding the external connection of the Internet Ekinalan said:

“External Internet connection which was 544 Mbps on July 2002 reached the level 2.1 Gbps by July 2003. We succeeded a quadruple increase in this area and this level will increase even more, by the investments we make. We plan this level will increase 6 times within one year. There will be a significant increase in external Internet connection. We will meet the capacity demeands by ADSL investments.”

Stating that the process of tender for sub-marine fiber optic cable continues, Ekinalan said the external Internet level, being 2 Gbps would raised to a level of 10-12 Gbps as such project is implemented.

Ekinalan said they would initiate trial system of wireless Internet on September, starting from the hotels, ports, airports and universities.

TURK TELEKOM’S NET PROFIT IS 1 BILLION DOLLARS

Answering the questions of journalists, Ekinalan and Akdemir said they are making negotiations for the telecommunication system to be established in Iraq.Upon a question of a pressman Akdemir said Turk Telekom’s net profit is 1 billion dollars. Replying the question “What is being done for VOIP” by saying it is the business of Institution of Telecommunication, Akdemir said the Board members coming from public sector get a salary of 900 million TL, where Board members coming from private sector gets 1,5 billion TL salary and the Board of Directors convene 4-5 times a month.

NEGOTIATIONS OF AYCELL-ARIA MERGER GO ON

Ekinalan, Turk Telekom’s General Manager said parties haven’t come to a stage of signature regarding the AYCELL-ARIA merger. Answering the questing if there will be a name change after the merger he said “There is no specified name” and added that they work on details and the announcements would be made after obtaining the permission from required authorities.

Upon a question, Ekinalan said Turk Telekom has a receivable total of a billion dollars. Saying that the legal dimension of the issue comes into prominence, he refused to make comments on details.

Regarding the telecommunication system planned to be set up in Iraq he said “As a Telecom operator, we would render the best service in Iraq. However there is no finalized collaboration.”

Saying that the process for Bulgaria Telecom continues, he said incorporation of a new company after the completion of procedures is in the agenda and the partnership structure would be in allocation where 65 percent would be owned by Koc and 35 percent would be owned by Turk Telekom. Ekinalan said IFC would provide more than 100 million Euro credit to the possible company.

AYCELL’S GENERAL MANAGER PAKSOY

Replying the question of turk.internetcom asking “After the merger of AYCELL-ARIA, beginning operation with two licenses is in question. Will there be a assignment or sale of the second licence? Or, is the price for the license going to be returned?”, Paksoy, AYCELL’s General Manager said “2,5 billion dollars is a very big amount of money. Such an action is not in question.” Emphasizing that they will have a very strong infrastructure after the merger Paksoy answered the question related to the future situation of AYCELL employees “AYCELL staff is the luckiest staff.”